Remittances are a hot industry to focus on for companies and startups in the block chain tech and finTech sectors.
Previously in 2013, a press release published by the World Bank stated that global remittances represented a $550 billion dollars industry, with India and China receiving $131 billion (see graph below).
The same article stated that by year 2016 we could expect a record number in remittances, registering a flow of $707 billion.
This year (2015), the Goldman Sach’s Investment Research Report part III – “The Socialization of Finance” featured that:
– According to the World Bank, there is an estimated roughly $550bn sent internationally in 2014. We estimate the fees generated by banks and other money transfer platforms to be roughly $30bn, or roughly 6% of the total principal amount. –
We expect block chain companies to be able to offer lower fees and faster transfer with solutions that are easily accessible to everybody. These must not rely entirely on having a smart phone or fast internet connectivity since that equals (in most cases) to a relatively high entry cost for many people in the developing countries.
Five key facts explain why Millenials are the major agent of change in the future of the global financial industry. We see endless opportunities for innovation in several FinTech areas like payments, credit/financing and insurance.
5 KEY FACTS
– 33% of Millennials think banks will be unnecessary in five years from now
– 14% of Millenial small business owners use alternative financing rather than traditional banks
– Less than half of Millenials have a credit card
– Only half expect to use cash on a weekly basis by 2020
– 50% are counting on tech startups to overhaul banks
The infographic is part of the recently published Goldman Sachs’ Investment Research Report – The Future of Finance – Part III “The Socialization of Finance”. Find the full report in our Knowledge Center.
Following Wikipedia’s publication, “Millennials (also known as the Millennial Generationor Generation Y) are the demographic cohort following Generation X. There are no precise dates when the generation starts and ends. Researchers and commentators use birth years ranging from the early 1980s to the early 2000s.”